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III. BREAK EVEN ANALYSIS (30 points) A. SUBWAY RESTAURANT (15 points) This Subway Restaurant is bigger and at a higher volume location than the one
III. BREAK EVEN ANALYSIS (30 points) A. SUBWAY RESTAURANT (15 points) This Subway Restaurant is bigger and at a higher volume location than the one we considered in class. Fixed Expenses are $56,000 per month. The average customer spends $12 for sandwich, chips, drinks, etoc. The cost of the sandwich ingredients, soda, chips etc. is $4.00 per customer Calculate how many customers I must sell to each month to break even: Revenue per customer Cost per customer Profit per customer Fixed Expenses per month Number of customers need to sell (Fixed Expenses divided by Profit per customer) We say the breakeven for this restaurant is Please fill out this table: Total Customers Revenue Costs customers 6,0007.0008,000 Gross Profit Fixed Expenses Profit/(Loss)
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